Helium One Global shares were down a further 16% on Wednesday as investors continued to dump the stock. The Helium One share price has lost 74% of its value so far in December alone. The stock is down 89% year-to-date.
The company sent investors running for the hills after signalling in early December that it required additional funds to make any further progress in its drill campaign.
The funding surprise came after a year of difficulties securing a rig, poor drilling results and little progress.
“Having completed the costing exercise, the Company has identified a need for additional funds before Itumbula can be drilled,” Helium One said in a statement.
“The Company is advancing discussions with potential investors while also assessing other financing options and is confident of securing additional funding in the near future,” commented Lorna Blaisse, Chief Executive Officer of Helium One.
The CEO said this on 5th December, and investors have not heard anything since.
It is an awfully difficult market to raise funds in. Investors, clearly predicting unfavourable terms of any financing package, have decided to jump ship.
This will make life even more difficult for Helium One, which now has a market cap of just £8.6m.
